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Sick Pay

DBnr
Level 2

Thought sick pay was non-taxable?   Client received W-2 with income and withholding and box 13 checked.  Does that mean all of this is taxable?

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dd4vols
Level 10
Level 10

Sick pay is almost always taxable, including third party sick pay, and treated just like any other wages.  I believe about the only time it would not be taxable, is if the recipient paid for the sick pay premiums himself and with after-tax dollars. Very rare!!  and there is a caveat about the payments received after 6 months of regular sick pay payments.

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posted.

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dd4vols
Level 10
Level 10

Sick pay is almost always taxable, including third party sick pay, and treated just like any other wages.  I believe about the only time it would not be taxable, is if the recipient paid for the sick pay premiums himself and with after-tax dollars. Very rare!!  and there is a caveat about the payments received after 6 months of regular sick pay payments.

If an answer solves your issue, click on the "Accept as Solution" button! Makes it easier for people to find answers to similar questions that have already been posted.